Spring wheat extends losing streak as weather forecast improves, corn, soy firm

CHICAGO: US spring wheat futures fell 1.1 percent to their lowest in nearly nine months on Wednesday as the latest weather forecasts eased fears about flooding in the northern U.S. Plains forcing farmers to cut back on their acreage plans for the crop.

Soft red winter wheat futures were higher, with the market underpinned by short-covering, traders said.

Corn and soybeans also were trading in positive territory early on Wednesday.

Concerns about planting delays in the U.S. Midwest provided support to corn while optimism about a potential U.S. trade deal with China boosted soybeans.

Massive domestic supplies of both commodities kept the gains in corn and soybeans in check.

MGEX spring wheat has fallen for five days in a row, with the front-month contract shedding 5.7 percent during the stretch and leaving the market prone to profit-taking by investment funds.

"It has kind of technically broke down," said Bill Gentry, managing director of agriculture consulting at Risk Management Commodities. "There is probably going to be some liquidation there."

At 10:35 a.m. CDT (1535 GMT), MGEX spring wheat was down 5-3/4 cents at $5.36 a bushel after falling to a contract low of $5.34-1/2 earlier in the session. Deferred spring wheat contracts also hit new lows on Wednesday.

"Remaining snow in northern Minnesota and eastern North Dakota melts with warm surge Friday to Monday, but flooding slowly moderates with lack of additional rain," Commodity Weather Group said in a note to clients on Wednesday.

Chicago Board of Trade May soft red winter wheat was up 1-1/2 cents at $4.65-1/2 a bushel.

CBOT May soybeans were 1/4 cent higher at $9.00-1/4 a bushel and CBOT May corn was up 1/4 cent at $3.61-3/4 a bushel.

Trade talks between the United States and China are progressing and both sides hope to get closer to a deal this week, White House economic adviser Larry Kudlow said on Wednesday as negotiators prepared to start a fresh round of talks in Washington.